Skellerup expects profit growth of up to 19% on gains in US market
By Suze Metherell
Oct. 28 (BusinessDesk) - Skellerup Holdings, the rubber goods firm, expects annual profit to grow as much as 19 percent as its investment in the US market begins to deliver returns.
The Auckland-based firm expects profit of between $24 million and $26 million in the year ending June 30, 2016, up from $21.9 million it reported in August, it said in a statement. The company is holding its annual shareholders' meeting in Auckland today.
Skellerup has focused on growing international markets, with a particular emphasis on the US market, to offset the decline in local sales for Skellerup's agri division, which manufactures and distributes rubber goods and other related agricultural products. A global glut of milk has seen a sharp drop in the price of dairy, New Zealand's largest export commodity, leaving farmers with less cash to spend on updating equipment.
“We have put a lot of effort into prioritising the growth opportunities available to us, and made significant investment in the people and structures we need to make the most of those opportunities," chief executive David Mair said. "That work is now starting to pay off.”
Skellerup shares rose 0.7 percent to $1.46 and have gained 2.1 percent since the start of the year.